Govt cuts excise duty, service tax

Giving relief to the industry reeling under the impact of slowdown, the government today reduced the rates of excise duty and service tax. While the general excise duty has been reduced from 10 per cent to 8 per cent, the rate of service tax has been cut from 12 per cent to 10 per cent. Four per cent excise cut announced earlier in the stimulus package in December will continue beyond March 31, Finance Minister Pranab Mukherjee said while winding up the debate on the Interim Budget in the Lok Sabha today. The Lok Sabha later approved the Interim Budget by voice vote, amidst a walkout by the Opposition BJP and erstwhile supporters Left parties. Mukherjee further said that duty on bulk cement has been reduced from 10 per cent to 8 per cent.